Updates, advisories and surprises

(5:51 PM ET) SAN FRANCISCO (MarketWatch) -- Nationwide Financial Services Inc.
NFS, +4.72%
late Wednesday reported its second-quarter net income fell to $85.4 million, or 62 cents a share, from $197.3 million, or $1.37 a share, in the year-ago period. Results for the latest quarter includes non-operating realized investment losses of 29 cents a share. Revenue slid to $1.08 billion from $1.17 billion in the second quarter of last year. Analysts surveyed by FactSet Research estimated a quarterly profit of $1.15 a share on revenue of $1.13 billion. The financial services company also separately announced that Nationwide Mutual Insurance will buy all of Nationwide Financial's outstanding publicly held Class A common stock at $52.25 a share for a total of about $2.4 billion.

AIG reports $5.36 billion quarterly net loss

(5:37 PM ET) SAN FRANCISCO (MarketWatch) -- American International Group
AIG, -0.79%
reported a $5.36 billion second-quarter net loss late Wednesday as the insurance giant was hit again by write-downs and impairments on mortgage-related exposures. The net loss was $2.06 per common share. A year ago, AIG reported net income of $4.28 billion, or $1.64 a share. The quarterly net loss included $5.57 billion of unrealized market valuation losses on AIG's super senior credit default swap portfolio. It also included $6.08 billion of net realized capital losses, the company disclosed.

Allianz second-quarter net income falls to 1.54 bln euros

(5:12 PM ET) SAN FRANCISCO (MarketWatch) -- Allianz Group(DE:840400)late Wednesday reported its second-quarter net income fell to 1.54 billion euros ($2.37 billion) from 2.14 billion euros in the second quarter of 2007. On a per-share basis, the German financial services group earned 3.44 euros, down from 4.85 euros a year earlier. Its second-quarter operating profit totaled 2.1 billion euros, down from 3.29 billion euros in the year-earlier period. Revenue slid 9.5% to 22 billion euros. Analysts surveyed by Thomson Reuters had forecast earnings of 2.69 euros a share on revenue of 23.88 billion euros. Allianz also lowered its operating profit growth outlook, noting that it is unable to meet its long-term compound annual growth rate of 10%. "Due to expected market conditions accurate earnings predictions, especially for banking, are not feasible. But underlying operating profitability in insurance and asset management is stable enough to generate a run rate before banking of 9 plus billion euros in 2008 and 2009," said Michael Diekmann, chief executive of Allianz.

Sunoco profit falls as high oil price hurts refining margins

(4:40 PM ET) SAN FRANCISCO (MarketWatch) -- Oil refiner Sunoco Inc.
SUN, -1.42%
reported late Wednesday second-quarter net income fell to $82 million, or 70 cents a share, from $509 million, or $4.20, a year ago. Excluding one-time items, income for the quarter was $61 million, or 52 cents a share. There were no special items in the year-ago quarter. Revenue for the three months ended June 30 rose to $16.08 billion from $10.76 billion. Analysts surveyed by FactSet Research predicted the Philadelphia-based company would post earnings of 72 cents a share on $12.47 billion in revenue. Sunoco shares rose 3.3% to close at $43.28 ahead of the report.

VeriSign reports deeper loss on charges

(4:28 PM ET) SAN FRANCISCO (MarketWatch) -- VeriSign Inc. saw its net losses grow in the second quarter on restructuring charges while revenue grew 17% from the same period last year. The provider of electronic commerce systems
VRSN, -0.03%
reported a net loss of $68 million, or 35 cents a share, compared to a net loss of $4.7 million, or 2 cents a share, for the same period last year. Excluding charges related to restructuring, the company said it would have earned $50 million, or 25 cents a share, for the recent period. Revenue grew to $303.2 million compared to $259 million last year. Analysts were expecting earnings of 23 cents a share on revenue of $243.4 million.

Advance Auto Parts profit rises 10%

(4:26 PM ET) SAN FRANCISCO (MarketWatch) -- Advance Auto Parts Inc.
AAP, +1.56%
reported late Wednesday fiscal second-quarter net income of $75.4 million, or 79 cents a share, up from $68.4 million, or 64 cents, in the year-ago quarter. Revenue for the three months ended July 12 rose 5% to $1.23 billion from $1.17 billion a year ago. Analysts polled by FactSet Research had predicted the Roanoake, Va.-based auto parts retailer would earn 72 cents a share on $1.2 billion in sales. Advance Auto Parts shares closed ahead of the report with a loss of 2.3% at $42.03.

Time Warner CEO: To assess cash flow of AOL access business

(11:27 AM ET) CHICAGO (MarketWatch) -- Once AOL's access business is separate from its advertising portal, Time Warner Inc.
TWX, +0.28%
will determine whether its cash flow is better than any yield the company might get from aligning it with an outside provider, Chief Executive Jeff Bewkes said Wednesday. Having the access unit separate also gives Time Warner "flexibility" if it wants to spin off or sell the business, he told analysts during a conference call.

Time Warner CFO: Turner networks' ad sales growth could slow

(11:07 AM ET) CHICAGO (MarketWatch) -- Time Warner Inc.
TWX, +0.28%
Chief Financial Officer John Martin said the company feels "very, very good" about the pace of third-quarter advertising sales at Turner Networks, but cautioned that growth comparisons "will become more difficult" in the second half of 2008. Speaking to analysts during a conference call, Martin said the strong results in the year-earlier third and fourth quarters will make Turner's delivery of double-digit percentage gains -- which it has maintained four quarters in row -- harder to achieve.

Time Warner CEO: AOL still sees second half ad improvement

(10:57 AM ET) CHICAGO (MarketWatch) -- Time Warner Inc.
TWX, +0.28%
Chief Executive Jeff Bewkes said Wednesday that AOL's display advertising business is still underperforming, but reiterated that the company expects organizational changes to improve display results in the second half of 2008. Display advertising at AOL fell 14% in the second quarter, with weakness in such categories as automotive, financial services, telecommunications and travel. But Bewkes added that some of the problem again had to do with difficulty in integrating Platform A, formed late last year, which allows advertisers to make purchases across its ad network. With ad buys now fully integrated across the network, the CEO said, ad sales trends should pick up in the third and fourth quarters of the year.

(9:37 AM ET) SAN FRANCISCO (MarketWatch) -- Freddie Mac
FRE, +6.67%
said on Wednesday that the recent housing law that created its new regulator may increase the mortgage giant's capital requirements and limit some of its activities. The Federal Housing Finance Agency and the new law "may, for example, increase our capital requirements, limit our portfolio and new product activities, increase our affordable housing goals, or limit our ability to attract and retain senior executives, we anticipate that the impact could be materially adverse," Freddie said in a quarterly filing with the Securities and Exchange Commission.

Freddie Mac, Fannie Mae shares sink after Freddie posts loss

(9:32 AM ET) WASHINGTON (MarketWatch) -- Shares of mortgage-finance giants Freddie Mac
FRE, +6.67%
and Fannie Mae
FNM, -1.53%
sank at the opening on Wednesday, after Freddie Mac reported a bigger-than-expected second-quarter loss of $821 million. Freddie Mac's shares dropped 15%, or $1.21, at the opening, to $6.80, while shares of Fannie Mae fell 15%, or $2.07, to $11.53. In its filing, Freddie Mac said it could suffer further if its new federal regulator increases capital requirements or limits its portfolio purchases. Freddie Mac also said it is cutting its dividend to five cents a share or less for the third quarter, down from a previous payout of 25 cents a share.

PG&E earnings per share rise to 80 cents

(9:26 AM ET) NEW YORK (MarketWatch) -- PG&E Corp.
PCG, -0.05%
said Wednesday that second-quarter earnings rose to $293 million, or 80 cents a share, compared to $269 million, or 74 cents a share, in the same period a year ago. Operating revenue rose to $3.6 billion compared to $3.2 billion. Analysts polled by FactSet, on average, estimated a profit of 80 cents a share on revenue of $3.3 billion. PG&E reaffirmed its previous forecast for earnings from operations in the range of $2.90-$3.00 per share for 2008 and for 2009 earnings from operations in the range of $3.15-$3.25 per share.

Blackstone Group's revenue slides 63%

(9:03 AM ET) BOSTON (MarketWatch) -- Private equity giant Blackstone Group
BX, +0.03%
on Wednesday reported a second-quarter net loss of $156.5 million, compared with profit of $774.4 million in the year-ago period, as total revenue slid 63% to $353.7 million. The New York-based company blamed the revenue decline on lower performance fees and allocations, and declining transaction fees. "Slowing growth of world economies and volatile markets continue to present challenges as well as opportunities for our firm," said Chief Executive Stephen Schwarzman in a statement.

Orbitz narrows quarterly loss to $5 million

(8:30 AM ET) NEW YORK (MarketWatch) -- Orbitz Worldwide Inc.
OWW
said Tuesday morning that its losses narrowed in the second quarter to $5 million, or 6 cents a share, compared to losses of $32 million in the second quarter of 2007. Net revenue for the quarter was $231 million, up from $229 million a year earlier.

CenterPoint Energy's quarterly net rises 44%

(8:16 AM ET) BOSTON (MarketWatch) -- CenterPoint Energy Inc.
CNP, +1.20%
on Wednesday said second-quarter profit rose to $101 million, or 30 cents a share, from $70 million, or 20 cents a share, in the year-ago period. Total revenue rose to $2.67 billion from $2.03 billion. ``I am pleased with the overall performance of our company during the second quarter, particularly in a period of high energy prices,'' said Chief Executive David McClanahan in a statement. ``We continue to see the benefit of our balanced electric and natural gas portfolio." CenterPoint Energy said it expects full-year earnings in "the upper half" of its outlook of $1.15 to $1.25 a share.

Avnet fourth-quarter profit rises to 95 cents a share

(8:14 AM ET) NEW YORK (MarketWatch) -- Avnet Inc.
AVT, +0.10%
said Wednesday its second-quarter profit totaled $144 million, or 95 cents a share, from $125 million, or 81 cents a share, in the same quarter a year before. Analysts had expected earnings on average of 79 cents a share, according to a FactSet Research survey. Sales for the quarter were $4.68 billion compared to $4.24 billion in the year-ago period. For the fiscal first quarter, Avnet said it expects sales of between $4.53 billion and $4.73 billion, with earnings to be in the range of 70 cents to 74 cents a share.

Transocean earnings per share jump to $3.45

(8:10 AM ET) NEW YORK (MarketWatch) -- Transocean Inc.
RIG, -2.39%
said Wednesday that second-quarter earnings rose to $1.1 billion, or $3.45 a share, compared to $549 million, or $2.63 a share, in the same period a year ago. Revenue for the period was $3.1 billion compared to $1.4 billion for the second quarter of 2007. Analysts polled by FactSet Research, on average, estimated earnings per share of $3.27 on revenue of $3.1 billion.

Och-Ziff reports second-quarter loss in challenging market

(8:03 AM ET) WASHINGTON (MarketWatch) -- Och-Ziff Capital Management Group LLC
OZM, +0.48%
reported a second-quarter net loss of $60.8 million due to $425.6 million of expenses related to the company's IPO in November. The New York-based hedge fund firm posted a loss per share of $1.05 for the latest quarter. Daniel Och, chief executive of Och-Ziff said the hedge fund firm was able to preserve fund investors' capital "against the backdrop of very challenging market conditions." Och-Ziff also reports so-called distributable earnings, which measure profit from the company's main hedge fund business minus adjusted income taxes. Distributable earnings were $53.8 million or 13 cents per adjusted class A share for the second quarter, the company reported

Playboy swings to quarterly loss of $2.1 million

(8:00 AM ET) NEW YORK (MarketWatch) -- Playboy Enterprises, Inc.
PLA, +0.00%
said Wendesday it swung to a second-quarter loss of $2.1 million, or 6 cents a share, from a gain of $1.9 million, or 6 cents a share, in the same quarter a year before. Analysts had expected a profit on average of 5 cents a share, according to a FactSet Research survey. Total net revenue for the quarter was $73.4 million compared to $85.7 million in the year-ago period.

Cincinnati Financial earnings per share fall to 38 cents

(8:00 AM ET) NEW YORK (MarketWatch) -- Cincinnati Financial Corp.
CINF, -0.63%
said Wednesday that second-quarter earnings fell to $63 million, or 38 cents a share, compared to $351 million, or $2.02 a share, in the same period a year ago. Revenue fell 28% to $917 million in the period. Atypically high catastrophe losses of $113 million resulted in a consolidated property casualty underwriting loss of $27 million in the second quarter. Analysts polled by FactSet, on average, estimated earnings per share of 42 cents on revenue of $794 million.

El Paso Corp. net climbs 13%, revenue dips

(7:48 AM ET) NEW YORK (MarketWatch) -- El Paso Corp.
EP, -2.86%
on Wednesday said net income for the three months ended June 30 rose 13% to $191 million, or 27 cents a share, from $169 million, or 23 cents a share in the year-ago period. Adjusted net income rose to 39 cents a share from 29 cents a share. Revenue fell to $1.15 billion from $1.2 billion. Analysts expected earnings of 39 cents a share, according to a survey by FactSet Research. "The outlook for our businesses has never been better," the company said.

Hospira's quarterly profit more than doubles

(7:43 AM ET) NEW YORK (MarketWatch) -- Hospira Inc.
HSP, +0.34%
said Wednesday that its second-quarter profit more than doubled to $69.1 million, or 43 cents a share, from $30.7 million, or 20 cents a share, in the year-ago period. Adjusted earnings rose to 57 cents a share from 49 cents a share. Net sales rose 3.7% to $901.6 million from $869.3 million. Analysts surveyed by FactSet Research forecast earnings of 62 cents a share, on average. The Lake Forest, Ill. pharmaceutical and medication delivery company narrowed its forecast for adjusted 2008 earnings to a range of $2.50 to $2.55 a share, from the prior range of $2.45 to $2.55 a share. The FactSet target is $2.51 a share.

Holly's second-quarter profit tumbles

(7:33 AM ET) NEW YORK (MarketWatch) -- Holly Corp.
HOC, +8.43%
said Wednesday that second-quarter net income fell to $11.5 million, or 23 cents a share, from $158.6 million, or $2.84 a share, in the year-earlier period. The company said that downtime at its refineries reduced refinery operating income by about 52 cents a share in the latest quarter. The Dallas energy company said revenue increased 43% to $1.74 billion from $1.22 billion.

NASDAQ profit rises

(7:33 AM ET) NEW YORK (MarketWatch) -- NASDAQ OMX Group
NDAQ, +0.78%
said Tuesday that it had second quarter earnings of $101.8 million, 48 cents a share , up from $77.2 million, 39 cents a shares in the second quarter of 2007. Net exchange revenues were $380.2 million in the second quarter, a 13.1% increase from the second quarter of 2007. Analysts polled by FactSet were expecting earnings of 43 cents a share. NASDAQ OMX attracted 54 new listings in the second quarter of 2008, 42 in the U.S. and 12 in the Nordic market.

Dean Foods earnings per share rises to 31 cents

(7:32 AM ET) NEW YORK (MarketWatch) -- Dean Foods Co.
DF, +0.21%
said Wednesday that second-quarter earnings rose to $49 million, or 31 cents a share, compared to $28 million, or 21 cents a share, in the same period a year ago. Net sales rose to $3.1 billion compared to $2.8 billion. Analysts polled by FactSet estimated, on average, earnings per share of 32 cents on revenue of $3.2 billion. On an adjusted basis, earnings per share were 33 cents, compared to 30 cents in the prior year's second quarter. The Dallas-based food processor and distrubutor affirmed its 2008 earnings-per-share estimate of at least $1.20 a share.

Spectra Energy profit up 51%

(7:31 AM ET) NEW YORK (MarketWatch) -- Spectra Energy Corp.
SE, +2.45%
on Wednesday said second-quarter net income rose to $295 million, or 47 cents a share, from $196 million, or 31 cents a share in the year-ago period. Operating revenue rose to $1.14 billion from $985 million. Wall Street analysts expected earnings of 42 cents a share on revenue of $1.14 billion, according to a survey by FactSet Research. The Houston-based natural gas pipeline operator said it expects to "significantly exceed" its 2008 employee incentive target of $1.56 a share. Analysts expected net income of $1.95 a share.

Mylan swings to $8.4 million second-quarter loss

(7:20 AM ET) LONDON (MarketWatch) -- Mylan Inc.
MYL, -0.76%
on Wednesday said it swung to a second-quarter loss of $8.4 million, or three cents a share, in the second quarter, compared to profit of $79.7 million, or 32 cents a share, a year ago. Excluding purchase-accounting and non-recurring items, the Pittsburgh-based generic and specialty pharmaceutical firm said second-quarter net earnings were $47.6 million, or 16 cents a share, compared to $128.9 million, or 52 cents a share, a year ago. Consensus expectations were for earnings of nine cents a share, according to FactSet Research. The company also increased the range of its adjusted earnings guidance for full-year 2008 to between 47 and 53 cents a share.

Qwest's second-quarter profit falls 24%

(7:20 AM ET) NEW YORK (MarketWatch) -- Qwest Communications International Inc.
Q, -0.10%
said Wednesday that its second-quarter net income fell 24% to $188 million, or 11 cents a share, from $246 million, or 13 cents a share, in the year-ago period. The Denver multimedia communications company said operating revenue fell to $3.38 billion from $3.46 billion. On average, analysts polled by FactSet Research expected earnings of 10 cents a share.

Marsh & McLennan earnings per share fall to 13 cents

(7:18 AM ET) NEW YORK (MarketWatch) -- Marsh & McLennan Cos. Inc.
MMC, -0.24%
said Wednesday that second-quarter earnings fell to $65 million, or 13 cents a share, compared to $177 million, or 31 cents a share, in the same period a year ago. Revenue was $3 billion, up 9% from the second quarter of 2007. Analysts polled by FactSet, on average, estimated earnings per share of 35 cents on revenue of $2.9 billion.

Sprint Nextel swings to $344 mln loss

(7:17 AM ET) NEW YORK (MarketWatch) -- Sprint Nextel Corp.
S, +0.39%
on Wednesday said it swung to a second-quarter loss of $344 million, or 12 cents a share verses a gain of $19 million, or a penny a share in the year-ago period. Adjusted earnings in the period for the telecommunications giant fell to 6 cents a share from 25 cents a share. Revenue for the three months ended June 30 fell 11% to $9.1 billion. Wall Street analysts forecast earnings of a penny a share on revenue of $9.15 billion, according to a FactSet Research survey. Sprint Nextel booked $1.1 billion in cash flow from operating activities and held $3.5 billion in cash at the end of the quarter. Looking ahead, Sprint Nextel expects to report higher post-paid subscriber losses in the third quarter, "due to a seasonal uptick in churn," the company said.

Watson Pharma quarterly profit climbs to 53 cents a share

(7:16 AM ET) NEW YORK (MarketWatch) -- Watson Pharmaceuticals, Inc.
WPI, -1.19%
said Wednesday its second-quarter profit totaled $60.3 million, or 53 cents a share, from $36.4 million, or 33 cents a share, in the same quarter a year before. Adjusted earnings were 48 cents a share, while analysts had also expected earnings on average of 48 cents a share, according to a FactSet Research survey. Revenue for the quarter was $623 million compared to $603 million in the year-ago period.

Devon Energy profit up 44% after production, prices rise

(7:07 AM ET) LONDON (MarketWatch) -- Oil and gas exploration and production company Devon Energy Corp.
DVN, -1.19%
said Wednesday that its second-quarter net profit rose 44% to $1.3 billion, or $2.88 a share, from $904 million, or $2 a share, a year earlier. Total revenue for the quarter rose 21% to $3.55 billion. Excluding a non-cash, unrealized loss on oil and natural gas derivatives, earnings for the quarter would have been $3.39 a share. Analysts polled by FactSet were expecting earnings of $3.10 a share. The group said oil and natural gas sales rose 65% to $4 billion, driven by both increased production and higher prices.

Foster Wheeler's quarterly net profit more than doubles

(6:55 AM ET) WASHINGTON (MarketWatch) -- Foster Wheeler Ltd.
FWLT
reported second-quarter net income of $160.8 million, or $1.11 a share, up from $71.9 million, 50 cents, earned in the same period last year. Excluding a net asbestos-related gain, the global engineering and construction contractor and supplier of power equipment would have shown a profit of $142.5 million, or 98 cents a share, for the latest quarter ended June 27. Quarterly revenue reached $1.7 billion form the prior year's $1.19 billion. The consensus estimate among six analysts surveyed by FactSet Research had been for Foster Wheeler to earn 83 cents a share for the latest quarter. Consolidated backlog in terms of future revenue jumped, but new orders booked came in below levels seen in the year-earlier second quarter.

Time Warner stands by 2008 business outlook

(6:32 AM ET) WASHINGTON (MarketWatch) -- Time Warner Inc.
TWX, +0.28%
affirmed its business outlook for 2008, pegging full-year earnings from continuing operations in a range of $1.07 to $1.11 a share. The consensus profit forecast among 21 analysts surveyed by FactSet Research is for Time Warner to post a 2008 profit of $1.08 a share. The company also restated its expectation that free cash flow for 2008 will total or top $4.5 billion. In addition, Time Warner continues to expect 2008 growth in adjusted operating income before depreciation and amortization will be in a range of 7% to 9%, off a 2007 base of $12.9 billion, although management anticipates that the full-year growth rate is most likely to come in at the low end of this range.

UPDATE: Time Warner posts 5% revenue growth, lower profit

(6:29 AM ET) WASHINGTON (MarketWatch) -- Time Warner Inc.
TWX, +0.28%
reported second-quarter net income of $792 million, or 22 cents a share, down from $1.07 billion, or 28 cents, earned in the same period last year. Quarterly revenue generated by the New York-based media giant reached $11.56 billion from the prior year's $10.98 billion, reflecting growth across Time Warner's subscription, advertising and content categories. The consensus forecast among 18 analysts surveyed by FactSet Research had been for a quarterly profit of 24 cents a share. A company spokesman pointed out certain special items had the net effect of decreasing income from continuing operations by 2 cents a share and inflating the prior year's profit by 3 cents a share. Operating income showed modest 1% growth, climbing to $1.95 billion in the latest quarter from $1.94 billon in the 2007 period, while adjusted operating income before depreciation and amortization rose 4% to $3.2 billion, with growth from the cable-television, networks and filmed-entertainment divisions more than offsetting AOL and publishing declines. (Updated to reflect impact of special items on profit for Time Warner's second quarter in both 2007 and 2008.)

Petrohawk swings to loss after charges

(6:27 AM ET) LONDON (MarketWatch) -- Natural gas and oil company Petrohawk Energy Corp.
HK, -1.52%
said Wednesday that it swung to a second-quarter net loss of $92.8 million, or 45 cents a share, from a profit of $45.6 million, or 27 cents a share, a year earlier. Revenue for the quarter rose 30% to $304.6 million. Excluding the impact of derivatives and other one-off items, earnings for the quarter were 23 cents a share. Analysts polled by FactSet were expecting a profit of 25 cents a share in the quarter. Average production during the quarter rose 8% to 283 million cubic feet equivalent per day. The company expects third quarter average production to be in the range of 310 million cubic feet to 320 million cubic feet per day.

Ambac swings to operating loss

(6:19 AM ET) LONDON (MarketWatch) -- Bond insurer Ambac Financial Group Inc.
ABK, +0.00%
said Wednesday that its second-quarter net income jumped to $823.1 million, or $2.80 a share, from $173 million, or $1.67 a share, a year earlier, due to mark-to-market gains on credit derivatives. Revenue for the quarter reached $1.33 billion, compared to $412.6 million a year earlier. Adjusting for $961.6 million of gains from credit derivatives as well as an estimated $1.06 billion of impairment losses due to credit deterioration, Ambac said it swung to an operating loss of $1.53 a share, from a profit of $2.01 a share a year earlier. Analysts polled by FactSet had been expecting a loss of $1.19 a share.

Lamar Advertising second-quarter net income falls to $14.3M

(6:18 AM ET) LONDON (MarketWatch) -- Lamar Advertising Co.
LAMR, -0.37%
said second-quarter net income fell to $14.3 million, or 15 cents a share, from $18.3 million, or 19 cents a share, a year earlier. Analysts polled by FactSet had expected the company to make 17 cents a share, on average. The company said it expects net revenue of $309 million in the third quarter, down 5% from the same period a year earlier on a pro forma basis.

Freddie Mac reports $821 million loss as it cuts dividend

(6:17 AM ET) LONDON (MarketWatch) -- Freddie Mac
FRE, +6.67%
said it swung to a second-quarter loss of $821 million, or $1.63 a share, after taking $2.5 billion in provisions for credit losses. Revenue fell to $1.69 billion from $2.34 billion. Analysts polled by FactSet Research had expected a loss of 38 cents a share. The mortgage giant is going to cut its third-quarter dividend to 5 cents a share or less from 25 cents a share and pay the full preferred dividend. In addition, the company continues to review and consider other alternatives for managing its capital including issuing equity in amounts that could be substantial, reducing or rebalancing risk, slowing purchases into its credit guarantee portfolio, and limiting the growth or reducing the size of its retained portfolio. Estimated regulatory core capital was $37.1 billion at June 30, which represented an estimated $8.4 billion in excess of the company's statutory minimum capital requirement, Freddie Mac said.

Japan's NTT posts 16.7% rise in quarterly net income

(2:58 AM ET) HONG KONG (MarketWatch) -- Nippon Telegraph and Telephone Corp. [jp:9432], Japan's largest phone company by revenue, posted a 16.7% rise in quarter net income for the June-ended period, helped by a stronger performance in its cellular unit NTT DoCoMo. NTT said net income totaled 175.5 billion yen ($1.6 billion), compared to 150.4 billion yen a year earlier, while revenue totaled 2.59 trillion yen, an increase of 0.3% on year. NTT maintained its group net income forecast of 500 billion yen for the fiscal year ending March 31. NTT DoCoMo, which contributes a majority of the parent's group profits, posted a 41.3% rise in net income to 50.7 billion yen. NTT, a formerly state-owned monopoly, was privatized in 1985. About one third of shares in the telecom are held by the Japanese government.

NYSE Euronext trading volumes rise

(2:45 AM ET) LONDON (MarketWatch) -- Stock exchange operator NYSE Euronext
NYX, +0.61%
(FR:NYX)said Wednesday that average daily European cash equity volumes rose 20.8% in July to 1.56 million transactions a day. U.S. cash equity volumes for the month rose 28%. The group's Liffe derivatives business recorded its busiest July ever, with 78.8 million total futures and options contracts traded during the month, an increase of 8.7% from a year earlier.

Nikon Q1 profit drops 23% on-year, keeps full-year forecast

(2:38 AM ET) HONG KONG (MarketWatch) -- Japanese digital camera maker Nikon Corp.(JP:7731)Wednesday announced a 23% drop in quarterly profit on a strengthened yen and retained its net income and sales forecast for the full year. The company's April-June period net income of 17.95 billion yen ($166 million), or 43.3 yen (diluted earnings) per share, fell short of analyst expectations. The company left its full-year net income forecast of 78 billion yen and sales guidance of 980 billion yen unchanged, however. Nikon shares ended 4.3% higher in Tokyo before the results were announced.

Standard Life operating profit up 51%, dividend increased

(2:38 AM ET) LONDON (MarketWatch) -- U.K. insurance and investments group Standard Life(UK:SL)said Wednesday that its net profit on a European Embedded Value basis fell to 7 million pounds from 321 million pounds, while pretax operating profit rose 51% to 534 million pounds. The group raised its interim dividend payment by 7% to 4.07 pence a share. Assets under administration fell to 162.4 billion pounds from 168.8 billion pounds as net inflows of 3.3 billion pounds were more than offset by negative market moves.

ITV swings to loss after 1.6 bln pound charge

(2:25 AM ET) LONDON (MarketWatch) -- U.K. television broadcaster ITV(UK:ITV)said Wednesday that it swung to a first-half net loss of 1.54 billion pounds ($3 billion) from a profit of 83 million pounds after taking a 1.6 billion pound goodwill impairment charge. The group said the charge was a result of reduced advertising market forecasts for 2008/09. Revenue for the period rose 3% to 1.03 billion pounds and operating earnings before interest, taxes and amortization fell 20% to 121 million pounds, reflecting higher sports costs mainly due to the Euro 2008 soccer tournament. The group said the television advertising market has weakened significantly in September, impacted by tough comparisons from a year ago. ITV estimated its net advertising revenue for September will be down 20% from a year earlier.

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